The benefits for startup India includes self-certification and a three-year exemption from inspections, an online portal and mobile app, an 80% in the patent application fee and a single-point hub for hand-holding

Prime Minister Narendra Modi on Saturday launched the "Start-Up India Action Plan" that aims to enable an eco-system to promote and nurse entrepreneurship across the country. What exactly is the plan and the details of the scheme?

So what exactly is Startup India?

Startup India in an action plan to develop an ecosystem to promote and nurture entrepreneurship across the country. This is based on an action plan aimed at promoting bank financing for start-up ventures to boost entrepreneurship and encourage startups with jobs creation. The campaign was first announced by Prime Minister Modi in his 15 August 2015 address from the Red Fort.

What is a startup?

A startup is an entity, private, partnership or limited liability partnership (LLP) firm that is headquartered in India, which was opened less than five years ago and have an annual turnover less than Rs25 crore. To be eligible for considering as startup, the entity should not be formed by splitting up or reconstruction and its turnover should not have crossed Rs25 crore during its existence.

What are the advantages?

Under the Scheme, no inspection would be carried out on start-ups for three years regarding labour laws. In addition, environment law compliance is required only post-self certification.

Are there financial benefits?

In patent costs, the startups can claim an 80% rebate. That means, if a startup applies for a patent, the government will fund the defence of the patent, and give rebate of 80% in the fees. The government will also pay fees of the facilitator for helping the startup obtain the patent. Faster patent registration and protection for Intellectual Property Rights (IPRs) is provided under the Scheme. Patent filing procedures to be simplified. Significant reduction in fees for filing Patents.

What are the advantages for startups regarding registration?

The government is launching a mobile app on 1 April 2016 and a portal that will allow companies to register in a day. In addition, there would be a single point of contact for Start-up India hub. In addition, there will be single window clearance for clearances, approvals, and registrations.

What is the government’s role in boosting start ups?

The Ministry of Human Resource Development (HRD) and the Department of Science and Technology have agreed to partner in an initiative to set up over 75 startup support hubs in the National Institutes of Technology (NITs), the Indian Institutes of Information Technology (IIITs), the Indian Institutes of Science Education and Research (IISERs) and National Institutes of Pharmaceutical Education and Research (NIPERs).

What are the special benefits for startups in public procurement?

Startups in the manufacturing sector are exempted from the criteria of prior ‘experience/ turnover’ without any relaxation in quality standards or technical parameters in public procurement (by government).

How much funding is available for this scheme?

Rs10,000-crore fund for new enterprises, equal opportunity in government procurement, a Rs500-crore credit guarantee scheme and easier exit norms. Japanese Softbank, which had already invested $2 billion in Indian startups, has pledged total investments of $10 billion.

What are benefits under the provision on Income Tax?

Under the Scheme, Income Tax exemption is available for first three years. However, the startup will be eligible for tax benefits only after obtaining certificate from the Inter-Ministerial Board, setup for this purpose.

Is there any exemption in capital gains tax?
Yes. If the money is invested in fund of funds recognised by the government, the investor can claim capital gains tax exemptions. In addition, existing capital gain tax exemption for investment in newly formed MSMEs by individuals shall be extended to all startups.

What is the eligibility for startups?

To become eligible as a startup and get a green signal from the Inter-Ministerial Board, the entity should be the one which aims to develop and commercialise, a new product or service or process or a significantly improved existing product or service or process that will create or add value for customers or workflow. Products, services or process, which do not have potential for commercialisation or is undifferentiated or have no or limited incremental value will not be considered under the Scheme. To be considered as eligible as startup the entity, should be supported by

a recommendation (with regard to innovative nature of business), in a format specified by DIPP, from an Incubator established in a post-graduate college in India

an incubator, which is funded (in relation to the project) from GoI as part of any specified scheme to promote innovation

a recommendation (with regard to innovative nature of business), in a format specified by DIPP, from an Incubator recognized by GoI or

be funded by an Incubation Fund/ Angel Fund/ Private Equity Fund/ Accelerator/Angel Network duly registered with SEBI that endorses innovative nature of the business or

be funded by GoI as part of any specified scheme to promote innovation or

have a patent granted by the Indian Patent and Trademark Office in areas affiliated with the nature of business being promoted

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Ganesh Kamat

8 months ago

1)Start-up needs protection from BABUS,
Babus Harassing the youth,
Traders,Farmers, Voters.. who wants to work.
Babus are ruthless as they
pay "Protection Money" to......?
for Posting/ Promotion/ Permit...
Administrations Reform is a Must,
2)Farmers suicide can get reduced,
by encouraging them to sell their
farm products on Railways to commuter
& roads to motorists, also we need
more Passenger Train, to help farmers
to sell farm products, to nearby Towns.

6) So with 1% Tax, the Taxpayers will work to improve Business / Goods Services/
R.& D./ Social work.So more Employment, make in India, less Farmer Suicide &
Peace of mind to the people.

7) Bank Account number is your mobile number.

9) For cash Transaction pay similar to Post paid Mobile charges,
to your mobile number @ RBI a/c.
Most will pay if the Tax is 1% & simple to pay.

10) Your Bank Account Number should be mobile number & connected to PAN/ AADHAAR /Passport/ Election Card etc.
For Simplicity.

11) Tax collection will be distributed to State & Local bodies, say 10% each, from the place of collection.

12) Also add 1% more (L.P.F.)
Less Privilege Fund,
similar to PPF for,
social / self benefit,
to give Power to the people for Social Cause / in your bad days.

13) In short Pay Rs. 20- for every Rs. 1,000- Received.

i) Rs. 10- as tax to RBI
ii) Rs. 10- in your (L. P. F.) a/c. Could be use for social cause/ for your bad days.

14) L. P. F. (Less Privilege Fund)
of 18 L- Cr, with 60 Cr voters, will reduce dependency on the Government for the Social development.
Fund will be used for the Social cause / in your bad days.

15) Keep faith in 60 Cr voters, as they will take care of their neighbours, in need.
Also most will pay, if Tax is 1? & Simple to pay.
Only Indian can make better India.

16) Can consider more tax for Higher Receipt, say above 0.5 Cr per year, payable at the year ending.

17) All Transactions are Traceable as mobile number is once Bank a/c number & connected to PAN/ AADHAAR
/ Election card.....
So, No Corruption & Black Money Problem.

18) Babus Harassing the youth,
Traders, Voters.. who wants to work.
Babus are ruthless as they
pay "Protection Money" to......?
for Posting/ Promotion/ Permit...
Administrations Reform is a Must.
For getting Votes.

19) Farmers suicide can get reduced, by encouraging them to sell their farm products on Railways to commuter
& roads to motorists, also we need more Passenger Train, to help farmers to sell farm products, to nearby Towns.

20) Expecting Feedback on How to make India Peaceful Place by Refined, Simple Laws.
No blame game please.
Media/ Babus /Netas /Judicial Role is Eminent along with People.

For "Sare Jaha Se Achha Hindustan Hamara." forward this message.

Dombivali, Thane, Kalyan, Ghatkopar and Kurla are the top 5 most crowded stations on the Central Railway's suburban network in Mumbai, in terms of number of passengers and revenues, reveals an RTI reply

Contrary to earlier reports on Thane being the most crowded station on Central Railway suburban network, Dombivali has emerged at the top, as per latest information received under the Right to Information (RTI) Act.

As per the information received by RTI activist Anil Galgali, in terms of the number of passenger's travelling to and from the station and thus generating highest revenue every day, Dombivali remains at the top among 85 station on Central Railway Suburban network.

About 38.56 lakh passengers use the Central Railway's suburban services generating a revenue of Rs2.19 crore every day. Dombivali's contribution in this is 2.34 lakh commuters and Rs14.95 lakh. Dombivali (2,33,635) is followed by Thane (2,25,490), Kalyan (1,80,676), Ghatkopar(1,74,926) and Kurla (1,50,708) as the top five most crowded stations on the Central Line of Mumbai Local, the information revealed.

Central Railway has 121 rakes and makes 1618 train trips every day to carry about 39 lakh commuters. One train carries around 2,383 passengers, Galgali said.

"However," he said, "all Statistics supplied by Central Railway are on an average and during peak hours it becomes double. The train trips are very less in comparison to the passengers travelling everyday on the Central line. Train trips are increased, the chances of accidents of passengers will reduce drastically."

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The wealth of the bottom half fell by just over $1 trillion in the same period, a drop of 41 percent

Just 62 individuals had the same wealth as 3.5 billion people — the bottom half of humanity—in 2015, according to a new report, An Economy For The 1%, by global advocacy Oxfam.

This figure is down from 388 individuals as recently as 2010. The wealth of the richest 62 people has risen 44 percent in the five years since 2010, an increase of $542 billion (Rs.24,66,100 crore) to $1.76 trillion (Rs.1,07,36,000 crore), which is 86 percent ($2.05 trillion) of India’s GDP in 2014.

The wealth of the bottom half fell by just over $1 trillion in the same period, a drop of 41 percent.

This scenario is a reminder of aphorism “the rich get richer and the poor get poorer”, a commonly used socialist criticism of capitalism. The findings provide some context to the forthcoming January 20 World Economic Forum (WEF) meeting in Davos with the theme: Mastering The Fourth Industrial Revolution.

“Had inequality within countries not grown during 1990 and 2010, an extra 200 million people would have escaped poverty. That could have risen to 700 million had poor people benefited more than the rich from economic growth,” the Oxfam report said.

“There is no getting away from the fact that the big winners in our global economy are those at the top,” the Oxfam report said. The poorest half of the world’s population received one percent of the total increase in global wealth, while half of that increase went to the top one percent since the onset of the 21st century.

In China, the rich one percent own a third of its wealth, while the poorest 25 percent own one percent, according to a recent study conducted by Peking University’s Institute of Social Sciences.

“Our economic system is heavily skewed in their favour (the rich), and arguably increasingly so,” said the Oxfam report. “Far from trickling down, income and wealth are instead being sucked upwards at an alarming rate. Once there, an ever more elaborate system of tax havens and an industry of wealth managers ensure that it stays there, far from the reach of ordinary citizens and their government.”

How wealth is spirited away to tax havens

Nine of ten companies, of 200 analysed, are based in at least one tax haven. Corporate investment in tax havens in 2014 was nearly four times larger than that in 2001, according to Oxfam’s analysis.

One recent estimate is that $7.6 trillion of individual wealth — more than the combined gross GDP of the UK and Germany — is currently held offshore, the Oxfam report said.

Similarly, around 30 percent wealth of Africa’s rich (around $500 billion) is held offshore, leading to a tax-revenue loss of nearly $14 billion to African countries.

The gender pay gap is also quite evident — 53 of 62 world’s richest people are men. Women make up the majority of the world’s low-paid workers, concentrated in the most precarious jobs, the report said.

In India, the pay of CEOs skyrockets

The CEO of India’s top information technology firm makes 416 times the salary of a typical employee in the company, the Oxfam report said.

Indian lawmakers passed a disclosure mandate in 2013, requiring pay ratios of CEOs to be made public, according to this report by the PricewaterhouseCoopers consultancy. India’s stock market regulator, the Securities and Exchange Board of India (SEBI), is now releasing the first set of such data, the Oxfam report said.

The top executive at ITC, the country’s largest cigarette manufacturer, for example, is paid 439 times the median salary for employees at his company, said the Oxfam analysis, quoting this report from Quartz, a portal.

India has only 42,800 people with a declared income exceeding Rs.1 crore; that is 0.1 percent of 35 million Indian tax payers, as then finance minister P. Chidambaram mentioned in his 2013-14 budget speech. India has 172 million people below the poverty line, IndiaSpend reported earlier; we also reported how wealth is increasing in India but so is inequality.

What the pharma industry — one of the world’s most profitable — has wrought

The pharmaceutical sector, one of the most profitable industries on earth, strongly protects intellectual property rights (IPR), which has paved the way for 90 billionaires.

The report explains how pharmaceutical companies in the US pressure their own government and through it, the Indian government and Indian pharma companies, to honour IPRs. For instance, pharmaceutical companies spent over $228 million on lobbying in Washington in 2014.

In India, patient groups, civil society organisations and government have challenged pharma giants for access to cheap medicines.

For instance, patient pressure groups claim that India has imported only small quantities of Onbrez (Indacaterol), a drug whose rights are owned by the Swiss multinational Novartis, whose drug could help as many as 30 million Indians suffering from chronic obstructive pulmonary disorder.

To meet the demand, Indian multinational company Cipla, based in Mumbai, began manufacturing its own version of Onbrez and selling it for a fraction of the original price.

Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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manoharlalsharma

11 months ago

62 people have same wealth as 3.5 billion/ do not wary of one day u may get if u try consistently,God will help u.